Generac Holdings Inc (GNRC, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With its shares currently priced at $156.47, Generac Holdings Inc has enjoyed a daily gain of 1.05%, and an impressive three-month change of 18.32%. A detailed analysis, supported by the GF Score, indicates that Generac Holdings Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. Generac Holdings Inc boasts a GF Score of 95, indicating a top-tier potential for market outperformance.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 10/10
Understanding Generac Holdings Inc Business
Generac Holdings Inc, with a market cap of $9.41 billion and annual sales of $4.02 billion, operates at a 10.6% operating margin. The company designs and manufactures power generation equipment and other engine-powered products for residential, commercial, and industrial markets. It is particularly noted for its standby generators, portable generators, lighting, outdoor power equipment, and a growing suite of clean energy products. The majority of its sales are generated within the United States.
Financial Strength Breakdown
Generac Holdings Inc's Financial Strength rating is robust, reflecting a well-managed capital structure and resilience against financial volatility. The company's strategic handling of debt, with a Debt-to-Revenue ratio of 0.42, further solidifies its financial health.
Profitability and Growth Metrics
The company's Profitability Rank is impressive, supported by a strong Predictability Rank of 3.0 stars, which underscores its consistent operational performance. Generac Holdings Inc's commitment to growth is evident in its Growth Rank of 10/10. The company's 3-Year Revenue Growth Rate of 18.5% outperforms 75.18% of its peers in the Industrial Products industry.
Conclusion
Considering Generac Holdings Inc's strong financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
